Housing benefit question

Waverley7

Hi

My parents are seperating and my mother will be moving out of the 'family home' and looking to rent a 1 bedroomed bungalow somewhere. She is on Pension Credit guarantee and has about £4-5K savings.

I am not sure how housing benefit works, is she allowed to find a property and rent it and pay the rent out of her savings and then when they have run out apply for housing benefit?

My father would be staying in the family home which still has a mortgage of roughly £55K and may possibly be worth £100-£110K

Would my mother be able to claim housing benefit this way? or are there any other pitfalls?

Thanks in advance.

HappyMJ

She can claim if she has anywhere up to about £16,000. However, the equity she has in the house will not be ignored forever. She has to sell her share at some point in the future. Could your father remortgage and buy her out?

Waverley7

They both have bad debt and CCJ's and are in their 70's and have no means of paying the mortgage so I don't think they would be able to remortgage.

Would the fact that she has her name on this house be held against her if she rented a bungalow privately?

Can anyone confirm if that is the correct way to do this as I still see some adverts that use the phrase 'no DSS' Do most landlords not want to accept someone on housing benefit?

Caz3121

the equity is normally be ignored whilst the property up for sale, if it is not going to be sold she may find she will not get any means tested benefits.
Is there any way they could live separately in the current property or, if not, is there any family your mother could move in with

rogerblack

I'm not sure if this disregards would apply.
(housing benefit regulations 2006, exempt capital)

4. Any premises occupied in whole or in part—(a)by a partner or relative of a single claimant or any member of the family as his home where that person is either aged 60 or over or incapacitated

It would clearly apply if they are still together.
I'm unsure if it applies if they do not divorce, and hence remain family in a legal sense.

Oldernotwiser

Waverley7 wrote: »

They both have bad debt and CCJ's and are in their 70's and have no means of paying the mortgage so I don't think they would be able to remortgage.

Would the fact that she has her name on this house be held against her if she rented a bungalow privately?

Can anyone confirm if that is the correct way to do this as I still see some adverts that use the phrase 'no DSS' Do most landlords not want to accept someone on housing benefit?

So how will the mortgage be paid when/if your mother moves out?

Waverley7

The interest is already being paid on the mortgage by the Pension credit or the government I think. So they are not in a position to take equity out of the house, if they did it would probably all go on servicing their other unsecured debts.

There is no where for my Mother to move into, we are quite a small family and my house is full, as my sister and her twins have just moved in after her marriage hit the rocks (It never rains but it pours)

My father doesn't want to leave the house so he won't sell it as he won't have anywhere to live.

Oldernotwiser

Couldn't your sister and children move in with your father and your mother in with you?

suelees1

Waverley7 wrote: »

Hi

My parents are seperating and my mother will be moving out of the 'family home' and looking to rent a 1 bedroomed bungalow somewhere. She is on Pension Credit guarantee and has about £4-5K savings.

I am not sure how housing benefit works, is she allowed to find a property and rent it and pay the rent out of her savings and then when they have run out apply for housing benefit?

My father would be staying in the family home which still has a mortgage of roughly £55K and may possibly be worth £100-£110K

Would my mother be able to claim housing benefit this way? or are there any other pitfalls?

Thanks in advance.

Yes she can find a property and yes she can claim HB. She doesn't need to spend her savings first. She should check out the local housing allowance one bedroom rate in the area she is looking to rent as the LA won't pay more than that. If she rents one which is more expensive she must pay the difference.

The Pension Service will continue to pay the same amount of housing costs to your dad.

They will ignore the capital tied up in the property for 26 weeks or for as long as your mum is taking reasonable steps to realise her share in the propery.

http://www.benefitsnow.co.uk/pc/capital.asp